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Tuesday, March 21, 2017

What happened to Nam Cheong today?

Nam Cheong tanked about 33% earlier in the day because of financial concerns raised by its auditor.

Let's look at Nam Cheong stock calls.

There is not a single BUY call for Nam Cheong except from Amfraser in the past.  Therefore, there is no real reason to buy Nam Cheong and retail investors would have avoided this company and suffer no real losses.  Avoid oil & gas companies because their customers cannot withstand economic downturns based on qualitative analysis.


Eric Ho said...

Do not just look at the stock call per se as it is misleading. Look at the target prices' movements for more clarity. If the analysts keep cutting the target prices but still retain the Buy calls, it is a harbinger for a fall.

Eric Ho said...

If the analysts keep changing their target prices often, it will mean the analysts are unsure of the company's cashflows. Therefore, it's best to avoid the company.